This
project was a follow-up review to our February 2009 report on IRSís controls
over religious compensatory time (RCT).†
TIGTA conducted this follow-up inspection to determine if proposed
corrective actions were implemented and if they significantly reduced the
potential for employees to accumulate excessive RCT balances.

WHAT TIGTA RECOMMENDED

TIGTA recommended that the IRS Human Capital Officer modify the procedures
to (1) require all employees (bargaining and non-bargaining) repay advanced
RCT before approving voluntary requests to earn overtime, compensatory time,
or credit hours, and (2) develop a standardized process and mechanism
for requesting, authorizing, and documenting the use of RCT. †We further recommended that
the IRS Human Capital Officer require that all managers and timekeepers
receive training on regulations and IRS policies concerning requesting and
using RCT.

IRS
management agreed with recommendations affecting
bargaining employees, and plans to assess the status of RCT issues and
consider proposing changes related to RCT in negotiations for the next labor
agreement between the IRS and the Nation Treasury Employees Union (NTEU),
which should start in October 2013.† The
IRS agreed to consider mandatory RCT training for managers only, and plans to
use web communications to keep both managers and timekeepers aware their
responsibility to adhere to RCT requirements.

Issued
on June 23, 2011

Follow-up Review of
Controls Over Religious Compensatory Time

WHAT
TIGTA FOUND

While
the IRS has partially implemented corrective actions related to
recommendations contained in TIGTAís February 2009 inspection report, TIGTA
believes additional actions would further strengthen the controls to deter
and prevent abuse of RCT.

TIGTA found that, between February 2008 and June 2010, the overall number of
employees with RCT balances decreased by approximately 33 percent, and the
number of employees with excessive RCT balances has decreased by nearly 37
percent.† TIGTA also found that only
about two percent of IRS employees have RCT balances, and the vast
majority of these employees (about 81 percent) had relatively low balances.

Although the issue of excessive balances is not widespread within
the IRS, the accumulation of excessive balances increases the risk that RCT may
be used for unintended purposes.† This
includes earning RCT and not routinely using it with
the intention of receiving a lump sum payment for the balance upon separation
or retirement; using RCT in place of annual or sick leave; or allowing employees
to earn RCT in lieu of overtime, compensatory time, or credit hours.

Additionally,
TIGTA determined a few employees earned hundreds of overtime or credit hours
without first repaying the advanced RCT balances they were carrying.† This is due in part to the IRSís decision
not to include this requirement in its revised 2009 National Agreement with
the NTEU.

READ
THE FULL REPORT

To view the report,
including the scope, methodology, and full IRS response, go to: